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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB/A
(Mark One)
[ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1998
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission file number: 333-4028LA
MINISTRY PARTNERS INVESTMENT CORPORATION
(exact name of small business issuer as specified in charter)
California 33-0489154
(State or other jurisdiction of (I.R.S. Employer Identification
incorporation or organization) Number)
1150 N. Magnolia Ave., Anaheim, California 92801
(Address of principal executive offices)
(714) 229-3619
(Issuer's telephone number, including area code)
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
YES X NO
At September 30, 1998, registrant had issued and outstanding 100,000 shares
of its no par value common stock, all of which were held by Evangelical
Christian Credit Union. No market exists for the Common Stock.
Registrant estimates the aggregate market value of such shares to be not
greater than $1,000,000.
Transitional Small Business Disclosure Format (check one):
YES NO X
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PART I - FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations.
The financial information included herein should be read in conjunction
with the Financial Statements, including the Notes thereto.
Results of Operations
Nine Months Ended September 30, 1998 vs. Nine Months Ended September 30, 1997
During the nine months ended September 30, 1998, the Company incurred
a net gain of $49,174 as compared to a net loss of $(42,895) for the
same nine months ended September 30, 1997, an increase in net income of
$92,069. Interest income, net, for the period increased to $245,912, an
increase of $123,760 (or 101%) from $122,152 for the nine months ended
September 30, 1997. These increases are attributable primarily to an increase
in the Company's Mortgage Loan investments. The Company's cost of funds
(i.e., interest expense) during this period increased $239,439 (or 102%);
i.e.,$475,169 for the nine month period ending September 30, 1998 as compared
to $235,730 for the nine months ended September 30, 1997. This increase is
attributable to an increase in Notes Payable. At September 30,1998, the
company had outstanding debt securities (Notes Payable) of $10,849,694, up
from $6,573,441 at September 30, 1997, an increase of 65%.
The Company's general and administrative expenses for the nine
months ended September 30, 1998 increased to $176,257 from $165,046 for the
same period ending September 30, 1997, an increase of 7%. This is
attributable to the addition of two staff during this period in 1998.
The Company is addressing the Year 2000 issue with its parent company,
Evangelical Christian Credit Union, who is the data processing provider for
the Company. The Year 2000 issue was created by the decades-old computer
practice of increasing data processing speed and reducing data storage
requirements by using two digits to represent the year instead of four.
This practice precipitates a potential problem as the year 2000 is entered:
Time-sensitive computer programs may recognize a date using "00" as the year
1900 rather than the year 2000. The Company is tracking its Year 2000
preparation in a database that includes software, hardware devices, vendors
and interfaces. Most critical time-sensitive systems will be compliant by
the end of 1998. Some remaining systems will be retired in 1999 as the
Company installs new systems to better serve its investors. Although new
systems may be characterized as Year 2000 compliant by their vendors, the
Company will not list them as compliant until they have been installed and
tested. All installed systems will be compliant by mid-year 1999. Because
of the nature of their operations, the Company does not believe the ability
of Mortgage Loan recipients (primarily churches) to maintain payment schedules
will be materially impacted by the Year 2000 issue. However, the failure of
several Mortgage Loan recipients to meet such payment schedules as a result of
the Year 2000 issue could have a material adverse effect on the Company's
results of operation or financial position. Though the Company does not
expect the Year 2000 issue to have a material adverse effect on its result of
operation or financial condition, there can be no assurances of that position.
Contingency plans include alternative vendors, alternative procedures and a
business recovery plan which is tested annually. The business recovery plan
is designed for catastrophic events such as earthquakes or major fires, and
has application also to the Year 2000 issue. Remediation costs associated
with Year 2000 have been minimal for the Company. It believes remediation
costs will continue to be nominal through completion of Year 2000 compliance
in mid-1999.
Liquidity and Capital Resources
Nine Months Ended September 30, 1998 vs. Nine Months Ended September 30, 1997
Net increase in cash during the nine months ending September 30, 1998
was $298,540, compared to a net decrease of $(91,201) for the nine months
ended September 30, 1997, a difference of $389,741. Net cash provided by
operating activities totaled $54,183 for the nine months ended September 30,
1998, an increase of $81,807 over $(27,624) used by operating activities
during the nine months ended September 30, 1997. This difference is
attributable primarily to an increase in net interest income from Notes
Receivable during the nine month period ending September 30, 1998 as compared
to the same period in 1997.
Net cash used by investing activities totaled $(1,821,468) during the
nine months ended September 30, 1998, compared to $(4,271,834) used during the
nine months ended September 30, 1997, a decrease of $(2,450,366) or 57%.
This difference is primarily attributable to a decrease in Notes Receivable
purchased during the nine month period ending September 30, 1998 as compared
to the same period in 1997.
Net cash provided by financing activities totaled $2,065,824 for this
nine month period in 1998, a decrease of $2,142,433, or 51%, from
$4,208,257 provided by financing activities during the nine month period
ending September 30, 1997. This difference is primarily attributable to
repayments on a line of credit and on Notes Payable during the nine month
period ending September 30, 1998 as compared to borrowings from that line of
credit during the same period in 1997.
At September 30, 1998, the Company's cash, which includes cash reserves
and cash available for investment in the Mortgage Loans, was $418,526,
up from $69,202 at September 30, 1997, an increase of $349,324.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
Dated: January 11, 1999 MINISTRY PARTNERS INVESTMENT CORPORATION
(Registrant)
By: /s/ John C. Garmo
John C. Garmo, President
By: /s/ Brian Scharkey
Brian Scharkey,
Principal Accounting Officer
